MGT101 Quiz 3 MCQs

MGT101 QUIZ 3 FILE (MODULE 11,12,13 & 14)

1. Expired portion of direct cost is treated as: Handout

page 276, chap 14

a. Expense

b. Cost C. Liability D. Income

2. Discount received from a creditor is Credited under main head: Handout page 150 a. Expenses

b. Income

C. Assets D.

3. Accumulated depreciation of furniture is

a/an__________. Handout page 134 a. Expense account

b. Contra asset account

c. Liability account d. Asset account

4. If Work in Process closing inventory is provided in trial balance, then that inventory is treated in:

a. Balance Sheet only

b. Profit and loss account only c. Both profit & loss account and balance sheet d. Expense only

Q5. Factory overhead is a/an: Handout page 273, chap

1. Expense
2. Liability
3. Income
4. Cost

Correct answer: Cost

6. Purchases Rs.500, Carriage outward Rs.50, Gross Sales Rs. 700 and Gross Profit Rs. 100. Net Purchases = ?

1. Rs. 500
2. Rs.550
3. Rs. 600
4. Rs. 650

Correct answer: Rs. 500

7. Carriage inward is Debited under main head: Handout

page 259, chap 13

a. Expenses

b. Income c. Assets d.

8. Capital introduced by the owner is a __________. Handout

page 253, chap 12

a. Capital Expenditure b. Revenue Expenditure

c. Capital Receipt

d. Revenue Receipt

Q9. Factory overhead cost = Power & fuel cost + ____.

1. Direct labor cost
2. Direct material cost
3. Indirect material cost
4. Other direct cost

Correct answer: Indirect material cost

10. Consumed direct supplies are considered as: a. Admin expense

b. Cost of sales

c. Selling expense d. Financial expense

11.

a. Purchases return b. Cheques paid to creditors

c. Bad debts

d. Discount received

12. When correct accounting effect (Dr/Cr) is given in the wrong accounting head as well as the wrong main head, it is known as:

a. Error of omission b. Error of

c. Error of principle

d. Error of

13. The unexpired portion of direct cost is treated as:

a. Expense

b. Asset

c. Liability d. Income

14. A control account is an individual account that appears in the

a. Journal

b. General ledger

c. Trial balance d. Invoice